Pension funds are dipping their toes into buying bitcoin, in a sign that even typically staid corners of finance are finding it hard to ignore the potential outsized returns from cryptocurrencies.

Over 1,000 hedge funds, pensions and other financial institutions are invested in Bitcoin directly or through exchange-traded products. Several U.S. state pension funds are adopting

Pension funds are investing in Bitcoin, eyeing massive returns despite risks, as crypto's explosive growth catches the attention of retirement savings managers.

Bitcoin's recent rally has attracted conservative investors with many pension funds showing increased interest in crypto.

U.S. state and local pension funds are looking at speculating on cryptocurrencies to solve their funding crisis.